Matthew Kolberg
Phone (503) 265-8270
Fax (503) 265-8290
Email

Notice: These articles are provided "as is." Matt Kolberg cannot edit or change the information provided.
Free Credit Analysis
Click Here
OR

Call: (503) 265-8270

How Good a Deal Is Your Banks Mortgage Insurance Plan?

When you go to the bank to get a mortgage, you'll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Most financial institutions act like they are doing you a favor by offering you mortgage insurance through their own group plan, but are they?

The truth is that you could probably get a much better deal and at least an equal amount of protection by shopping around for your own insurance policy.

Essentially, mortgage insurance is no different than term-life insurance. With both, your policy only lasts for a specified period of time and pays its benefits if something happens to you or your spouse. The real difference comes down to how much control you'll have over your policy and how much you'll pay for it.

If you choose to use the mortgage insurance offered by the bank, you will not be able to customize a policy to fit your needs and you'll be lumped together with other borrowers under a group plan. Because of this, you will only have limited control over your policy. For example, through a third party provider, you would be able to choose your own beneficiary, decide how to spend the proceeds if necessary, and cancel the policy at any time. You would not have these options with a lending institution.

Additionally, the bank maintains the right to not renew your policy and to cancel the policy when you sell the house. If you find your own insurance provider, you can make those decisions yourself.

The other big difference is cost. A third party insurance policy's premiums will not go up, so you would pay the same premium today that you'd pay ten years from now. You won't get that same guarantee from a bank which can and probably will increase your premiums during the life of the policy. In most cases, you'll probably pay more through a bank anyway. In fact, you could pay as much as 40% more than you would if you shopped around and found your own insurance provider. Not to mention that the policy you take out through your bank will gradually decrease in value while a plan you select from an outside source will be worth the same amount during the entire policy period.

Of course, many people don't mind paying more for their mortgage insurance because it's more convenient than dealing with insurance agents. The truth is that you can easily find a policy that fits your needs and provides affordable premiums via the Internet. An organization, such as the Hughes Trustco Group, can even generate quotes for you from multiple insurance providers so you'll know that you're receiving the best deal possible on the policy you want.

The bottom line is that mortgage insurance is important and should be part of your home buying or refinancing preparations, but that does not mean you need to pay more or let the bank make important decisions for you. Instead, you should find your own personal plan from a third party provider which will let you stay in control of your policy and will save you money in the long run.

Ivon T. Hughes, The Hughes Trustco Group Ltd. Canadian Insurance Broker - Get a FREE Quote TODAY! Tel: (514)842-9001 Email: info@trustco.ca Web: http://www.trustco.ca

Free Credit Analysis
Click Here
OR

Call: (503) 265-8270

Serving, Washington, Oregon, Seattle, Everett, Bellevue, Tacoma, Olympia, Vancouver, Portland, Beaverton, Tigard, Hillsboro, Tualatin, Gresham, Oregon City, Salem, Clackamas, Washington County, Multnomah County, Coastal area, Northwest Oregon and Washington

All Related Articles: Little Known Secret: Eliminate your Mortgage in 23 years or less! Mortgage Free In 15 Years! Is an ARM Right For You? Private Mortgage Insurance (PMI) 5 Things In Selecting The Best Mortgage - You Should Know Real Estate Finance Strategy that Few People Consider Some Mortgage Loans are Available with Absolutely no Money Needed From You What You Dont Know About The Real Estate Process, Some Inside Secrets Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying Know Your Mortgage Fees, and Youll Never Pay Too Much for Your Loan Understanding Mortgage Basics Mortgage Soup Home Loans Adjustable Rate Mortgages Offer Alternatives For Home Buyers Comparing The True Cost Of Obtaining A Home Loan The Top 5 Things You Must Know Before Applying for a Mortgage Adjustable Rate Mortgage - How They Work? Mortgage After Bankruptcy Mortgage Cycling - Brilliant or Risky The Top 5 Reasons to Buy a Home Why a Mortgage Professional Beats a Banker Every Time -- The Story Tells It All Mortgage Terms Explained How to Save Money by Using an Independent Commercial Mortgage Broker Follow A Few Simple Steps To Make Shopping For Your New Home Loan A Little Easier Interest Only Home Loan - Is It Right For You? Home Mortgages: Up, Up and Away! Option ARM Mortgage Loan - Is This Really for You? Zero Down Payment Mortgage - Can It Be Done? Mortgage Advice To Make Mortgages A Really Smooth Ride Mortgage Cycling May Be Your Best Bet For Equity Buildup and Investment Real Estate Mortgage Calculator - How to Calculate Your Monthly Mortgage Payment Are You Ready for a 40-year Mortgage? Commercially Viable Commercial Mortgages Mortgage Reduction Solutions A Home Loan Can Help You Own Your Dream Home Mortgage Loan Information - Know The Basics When You Refinance or Purchase a Home Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You? Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage Fixed Rate Mortgage Loans - Understand the Pros and Cons of the Fixed Rate Mortgage Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate Home Loan Lenders - Finding the Best Home Mortgage Lender Mortgage Glossary of Terms Online Home Equity Loans: A Basic Glossary Interest-only Mortgages Have Their Pitfalls Making Sense of Mortgage Speak 40-Year Mortgages: An Alternative to Interest-only Loans? No Fee Mortgages Coming Soon How Good a Deal Is Your Banks Mortgage Insurance Plan? The Right Home Loan - Floating or Fixed Rate Loan Buying a New Home - Home Buying Tips New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process Buying a House? How Much Home Can You Afford? Home Mortgage Loan Information - Which Type of Home Loan is Best For You? Using a Home Mortgage Calculator Reverse Mortgage - Be Sure You Need It Before Applying For One Do Your Homework - Find the Mortgage That Fits Your Lifestyle and Your Budget Save Time With a Bridge Loan Guide to Mortgage Terms What is a Mortgage? Types of Mortgages Guide to Mortgages Residential Mortgage - Finding The Best Home Mortgage Lender New Home Loan - Understand The Various Types Of Mortgage Lenders Mortgage Information Mortgage: Effective Household Investment for Financial Autonomy Home Loans and Mortgages - The Selection Can Be Bewildering First Time Buyers Fail To Shop Around Advantages Of Mortgage Pre-Approval 4 Things to Watch Out for When Choosing a Mortgage Company First Time Home Owner Mortgage Loans No Money Down Home Loan Home Loans -- The Hot New Product? The 30-year, Fixed-rate Mortgage What Is The Best Deal For A Mortgage? Flexible Mortgage Tips What is an Interest Only Mortgage? Are Biweekly Mortgages Really Worthwhile? The Zero Down 80/20 Mortgage Mortgage Prepayment Penalties - Just Say No Student Home Purchase Plan Internet & Mortgage Calculations Mortgage Basics for First Time Home Buyers How To Get a Mortgage If Youre Self-Employed Understand a Real Estate Appraisal Applying for a Home Loan Home Mortgage Loan Information - Which Type of Home Loan is Best For You?